Concessions to textile industry power producers: SHC hears suits

KARACHI: Justice Muhammad Junaid Ghaffar of High Court of Sindh (SHC) on Friday heard a number of suits filed by Artistic Fabrics Limited and others seeking 5 per cent concession on Sales Tax on imported Power Generators of 1100 KVA and above.

Rashid Anwar advocate, counsel for plaintiffs in his arguments relied on the SRO issued by the FBR and said concession existed at the time when plaintiffs imported the power generators. The concession was subsequently with drawn by the Federal Board of Revenue. The board decided that concession would be available to the independent power producers whose electricity generated is added to the National Grid.

Kashif Nazeer, Masooda Siraj advocates along-with Principal Appraiser Law Ilyas Ahsan appeared for the defendants including FBR and Pakistan Customs.

The defendants maintain that suits are barred under section 217 of the Customs Act 1969 as anything done by the government officials in good faith cannot be challenged before any court of law.

The FBR has revoked the concession available to the textile units who have imported this class (1100 KVA) generators and are producing power/electricity for their own in-house consumption, the defendants maintains justifying the levy of 5 per cent Sales Tax and demand there under.

The bench later adjourned further proceedings until April 6 when counsel for defendants would submit their arguments.

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